710 



TENNESSEE. 



which was of the opinion that no other propo- 

 sition than .that submitted in the Governor's 

 proclamation could be considered. The Gov- 

 ernor, having received assurances from some of 

 the creditors that an adjustment on the basis 

 of fifty cents on the dollar would be accepted, 

 called a second extra session, to begin on the 

 llth of December, immediately on the adjourn- 

 ment of the first: 



1. To consider the adjustment and compromise of 

 the State debt. 



2. To provide the necessary revenues to meet the 

 interest on sucli bonds as may be issued under such 

 adjustment, and for the more efficient collection of 

 the revenues of the State. 



3. To provide, by appropriate legislation, for the 

 expenses of the first extra session of the Fortieth 

 General Assembly, and of the session hereby con- 

 vened. 



A report of the Controller was submitted, 

 conveying the following information regarding 

 theTesources and debt of the State: 



ASSESSMENT OF TAXABLE PROPERTY IN THE STATE 

 FOil THE YEAR 1877. 



East Tennessee $54.22",545 



Middle Tennessee (De Kalb Ccunty estimated; .. 10.5,762,914 

 West Tennessee 75,^1 1,122 



Total taxable property $236,799,581 



BONDED DEBT. 



Amount of bond debt funded and registered De- 

 cember 19, Is76. including bonds held by East 

 Tennessee University $23,208.400 



Funded and registered since December 19. 1876. . 41,000 



Accrued interest from January 1, 1S76, to July 1, 

 1873 8,457,410 



Compound coupons, July. 1S74, to July, 1875, es- 

 timatad 40,000 



Securities canceled since December 19, 

 1S7R, 2.876bonds $2,876,000 



299 bonds, indebtedness of Mississippi 

 <fe Tennessee Railroad 299,000 



Coupons of above, five installment a 459.903 



$26,776,810 



Due by purchasers Knoxville & Char- 

 leston Railroad $52,125 



Due by purchasers McMinnville & Man- 

 chesier Railroad 204,000 



$23,141,902 



256,125 

 Total bond debt funded and registered. $22,885,777 



The school fund was stated as $2,512,500, the 

 interest on which is included in current expenses. 

 A statement of receipts of the treasury from 

 December 19, 1876, to Decemberl, 1877, showed 

 an aggregate of $1,258,386.55 ; expenditures 

 for the same period on warrants issued, $649,- 

 357.12, and $230,988.54 not included in cur- 

 rent expenses, or $880,345.66 in all. The prop- 

 ositions received for an adjustment on the fifty 

 per cent, basis came from various creditors who 

 claimed to be holders of large amounts of bonds. 

 One J. J. MacKinnon also appeared as the agent 

 of'" The Funding Association of America, Lim- 

 ited," claiming to represent the interests of a 

 large portion of the creditors, and submitting a 

 similar proposition. Wide differences of opinion 

 prevailed in the Legislature, ranging all the way 

 from a sentiment in favor of complete repudia- 

 tion to that of meeting all obligations in full ; 

 but the extreme views on either side had little 



support. A bill was finally framed and passed 

 in the Senate, providing for an adjustment of 

 the debt on the basis of fifty cents on the dol- 

 lar, represented by thirty-year bonds, bearing 

 interest at 4 per cent, for five year.*, 5 per cent, 

 for the second five years, and 6 per cent, there- 

 after. This failed in the House, a portion of 

 the opposition being in favor of the sixty per 

 cent, plan as the only one likely to be accepted 

 by all the creditors, another portion contend- 

 ing for 4 per cent, interest for the whole term, 

 and others objecting to a provision in the bill 

 making coupons receivable for taxes. The 

 Legislature finally adjourned on the 28th of 

 December, without accomplishing any part of 

 the purpose for which it was called together, 

 and leaving the subject of the debt where it was 

 at the beginning of the year. 



The regular session of the Legislature, which 

 began on the first day of the year, came to a 

 close on the 27th of March. The general legis- 

 lation was of small importance. The returns 

 of the vote for Governor at the election of 

 1876, as originally announced in joint conven- 

 tion of the two Houses, stood 122,507 for James 



D. Porter, the Democratic candidate ; 73,612 

 for Dorsey B. Thomas, independent candidate ; 

 10,571 for George Maney, Republican ; 1,690 

 for W. F. Yardley, colored Republican; and 

 603 for A. M. Hughes. The correctness of the 

 canvass was questioned, and the matter referred 

 to a committee for investigation. Their report 

 gave the vote as follows: Porter, 123,740; 

 Thomas, 75,695; Maney, 10,436; Yardley, 

 2,165. This was accepted as the correct official 

 declaration. Two United States Senators were 

 chosen, one for the full term of six years, from 

 March 4, 1877, and the other to fill the vacancy 

 occasioned by the death of Andrew Johnson, 

 whose term expires in 1881. Isham G. Harris 

 was elected on the first ballot for the full term, 

 but for the unexpired term 73 ballots were 

 taken, resulting finally in the choice of James 



E. Bailey. The Secretary of State, Treasurer, 

 and Controller, were also chosen by the 

 Legislature. Thirty-eight ballots -were taken 

 for Secretary of State, resulting in the choice 

 of C. N. Gibbs. M. T. Polk was elected Treas- 

 urer on the second ballot, and J. L. Gaines 

 Controller on the first ballot. The following 

 resolutions were adopted early in the session : 



Whereas, During the recent Presidential election, 

 his Excellency the President of the United States 

 lias seen fit to invade the rights of our sister States, 

 South Carolina and Louisiana, by sending the army 

 of the United States into the borders of said sister 

 States on the eve of the elections, with a view to in- 

 fluence the result of said elections and perpetuate 

 the sway of certain individuals against the will of a 

 majority of the voters in said States ; and, 



Whereas, The army of the United States, being then 

 stationed within the borders of said States, was 

 placed beneath the orders and under the control of 

 certain evil-disposed persons to be used by them for 

 the promotion of their own personal ends, and to 

 the injury of the liberties of the people therein, and 

 that all good citizens have the right and should pro- 

 test against this usurpation on the part of the Chief 

 Magistrate of the nation : therefore be it 



